URSA Major Minerals Incorporated
TSX : UMJ

URSA Major Minerals Incorporated

December 15, 2009 16:38 ET

URSA Major Minerals Reports Financial and Operating Results for the Nine Months Ended October 31, 2009

TORONTO, ONTARIO--(Marketwire - Dec. 15, 2009) -

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO ANY U.S. NEWS WIRE SERVICE OR FOR DISSEMINATION IN THE UNITED STATES.

URSA Major Minerals Incorporated ("URSA Major" or the "Company") (TSX:UMJ) announces its financial and operating results for the nine months ended October 31, 2009. The quarterly financial statements and related Management Discussion and Analysis have been filed on SEDAR (www.sedar.com). Additionally these documents are available on URSA Major's website at www.ursamajorminerals.com. All amounts are in Canadian dollars unless otherwise indicated.

Financial and Operating Highlights

- The Company recently announced that it is planning to resume mining operations at the Shakespeare Mine, located 70 km west of Sudbury Ontario. URSA Major has entered into a letter of intent with Xstrata Nickel to process Shakespeare ore at the Strathcona mill in Sudbury. Mining operations are expected to resume in early January subject to arranging financing for project working capital requirements. Approximately 200,000 tonnes of ore are expected to be mined, delivered and processed in 2010.

- On September 29, 2009, the company announced the initiation of a diamond drill program to test high-grade copper nickel targets at the past-producing Nickel Offsets Mine, located 40 km northwest of Sudbury. The first drill results include the intersection of a new lens of high grade massive sulphides grading 3.12% nickel, 1.15% copper and 3.6 g/t precious metals over 1.6 meters.

- For the 9 month period ended October 31, 2009, URSA Major received receipts of $744,598 on the sale of metals from test mining programs in the fall of 2008 and additional shipments of 10,000 tonnes of ore made in 2009.

- The Company reported no operating revenue for the three months ended October 31, 2009. Since the company has not declared commercial production at the Shakespeare project, pre-production revenue was applied against the investment in the Shakespeare project in accordance with Canadian generally accepted accounting principles (GAAP). Net loss for the quarter, including $98,000 of noncash stock option compensation, was $296,398 ($0.01) per share.

Outlook

As announced on November 19, 2009, the Company is planning to resume mining operations at the Shakespeare Nickel Copper Mine located 70 km west of Sudbury, Ontario. The Company has also resumed an exploration program in the Sudbury area.

URSA Major has entered into a letter of intent with Xstrata Nickel to process Shakespeare ore at the Strathcona mill located in Sudbury, Ontario. Mining operations are expected to start in January 2010 and approximately 200,000 tonnes of ore are expected to be delivered and processed in 2010. URSA Major's processing agreement with Xstrata is for 24 months, subject to certain provisions that allow for early termination of the arrangement by either party. To resume operations, URSA Major is currently evaluating opportunities for obtaining financing, including a credit facility coupled with a hedging program based on the anticipated metals inventory to finance project working capital requirements.

The Company is currently exploring potential high-grade nickel sulphide targets at the Nickel Offsets property within the Foy Offset dyke north of Sudbury. Of particularly interest are targets in close proximity to the existing workings of the former Nickel Offset No.1 Mine. The Company has recently completed a five hole, 1,800 meter diamond drilling program. URSA Major is also currently conducting borehole EM geophysical surveys to test for additional conductive mineralization and to evaluate of the extent of high grade conductive mineralization intersected in drill hole U15-02. Assay results on mineralization in additional holes are pending and the Company is evaluating additional drill targets.

URSA Major is an emerging mining company that is focused on growth through nickel, copper, and precious metal exploration and development, primarily in Ontario, Canada. URSA Major has a variety of projects ranging from pre-production mining with defined mineral reserves at the feasibility level through to early stage exploration. At the Shakespeare Project, the Company has defined a substantial near-surface mineral reserve and has completed a positive feasibility study on a 4,500 tonne/day open-pit mining operation and on-site processing plant. The project is fully permitted and to date, URSA Major has mined approximately 180,000 tonnes of ore at Shakespeare and this has been processed at Xstrata Nickel's Strathcona mill. For more information please see URSA Major's website at www.ursamajorminerals.com.

This release was prepared by management of the Company who takes full responsibility for its contents. Some statements contained in this release are forward-looking and, therefore, involve uncertainties or risks that could cause actual results to differ materially. Such forward-looking statements include comments regarding mining and milling operations, mineral resource statements and exploration program performance. Factors that could cause actual results to differ materially include metal price volatility, economic and political events affecting metal supply and demand, fluctuations in mineralization grade, geological, technical, mining or processing problems, exploration programs and future results of exploration programs, future profitability and production.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • URSA Major Minerals Incorporated
    Dr. Richard Sutcliffe
    President & CEO
    416-864-0615
    416-864-0620 (FAX)
    or
    URSA Major Minerals Incorporated
    Chris Chadder
    CFO
    416-864-0615
    416-864-0620 (FAX)
    info@ursamajorminerals.com
    www.ursamajorminerals.com
    or
    Investor Relations:
    Michael D'Amico
    647-500-6023
    or
    Gus Garisto
    416-805-3106